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1 Introduction to Project Management Welcome! Presenter: Bob Hull CalACT Conference September 202 S O Seminar Objective To provide an overview of project management processes and provide some skills, tools and techniques for managing a project. P Introduction to Project Management
2 What is a Project? A endeavor undertaken to create a unique,, or What is Project Management? Application of,, and to project activities to meet project.
3 Managing a Project Includes: Identifying requirements Balancing the competing demands for quality, scope, time, and cost Project vs Operation Sponsor Customer Stakeholder Terminology Project Manager Project Team Project Scope Project Life Cycle Project Life Cycle
4 Six Phases of a Project Enthusiasm Disillusionment Panic Search for the Guilty Punishment of the Innocent Praise and Honors for the Nonparticipants PM KKnowledge AAreas Project Integration Management Project Cost Management Project Scope Management Project Quality Management Project Time Management Project Risk Management Project Communication Management Project Procurement Management Human Resource Management
5 PProject I Initiation What is a Project Charter? A document that formally authorizes a project. Provides the PM with the authority to apply organizational resources to project activities. Scope Management
6 Project Scope Management Project scope management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Scope Management Collect Requirements the process of defining and documenting stakeholder s needs to meet project objectives. Define Scope the process of developing a detailed definition of the project and product. Create WBS subdivide the project deliverables and project work into smaller components. Verify Scope formalizing acceptance of the completed project deliverables. Control Scope monitoring the status of and controlling changes to the project scope. Collect Requirements
7 Define Scope The process of developing a detailed definition of the project and product. Create WBS Create WBS subdivide the project deliverables and project work into smaller, more manageable components. Work Breakdown Structure (WBS)
8 Work Breakdown Structure (WBS). House remodeling Project (Level 0). Project Management (Level ).2 Remodel Garage.3 Remodel bathroom.3. Foundation (Level 2).3.2 Walls.3.3 Roof.3.4 Electrical.3.5 Plumbing.3.5. Sink (Level 3) Toilet Shower Group Exercise Work Breakdown Structure WBS for a Dinner Party TTime M Management
9 Project Time Management PROCESSES. Define Activities 2. Sequence Activities 3. Estimate Activity Resources 4. Estimate Activity Durations 5. Develop Schedule 6. Control Schedule Project Time Management Define Activities The process of identifying specific actions to be performed to produce the project deliverables Define Activities Tools and techniques: Decomposition Templates Rolling wave planning Expert judgment
10 Define Activities Outputs: Activity list Activity attributes Milestone list Project Time Management Sequence Activities The process of identifying and documenting relationships among the schedule activities Sequence Activities Tools and Techniques: Precedence Diagramming Method (PDM) Dependencies Applying leads and lags Schedule network templates
11 Sample PDM Sequence Activities Output: Project schedule network diagrams Project Time Management Estimate Activity Resources Estimating the type and quantities of material, people, equipment, and supplies required to perform each schedule activity
12 Estimate Activity Resources Tools and techniques: Expert judgment Published estimating data Project management software Bottom-up estimating Estimate Activity Resources Output: Activity resource requirements Project Time Management Estimate Activity Durations Estimating the number of work periods will be needed to complete individual activities with estimated resources
13 Estimate Activity Durations Tools and techniques: Expert judgment Analogous estimating Parametric estimating Three-point estimates (PERT-Program / Project Evaluation and Review Technique) Reserve Analysis Estimate Activity Durations Output: Activity duration estimates Project Time Management Develop Schedule Analyzing activity sequences, durations, resource requirements, and schedule constraints to create the schedule
14 Tools and techniques: Schedule network analysis Critical path method Critical chain method Schedule compression Crashing & fast tracking What-if scenario analysis Resource leveling Project management software Adjusting leads and lags Develop Schedule Develop Schedule Outputs: Project schedule Network Diagram Bar (Gantt) Chart Milestone Chart Schedule Baseline Project Time Management Processes REVIEW Planning Processes Define Activities Sequence Activities (Network Diagram) Estimate Activity Resources Estimate Activity Durations Develop Schedule
15 Time Management Exercise Late Start / Late Finish see handout Group Exercise Dinner Party A. Develop the Project Schedule. Define Activities Sequence Activities (Network Diagram) Estimate Activity Resources Estimate Activity Durations Develop Schedule B. Define the Critical Path. C. Exercise Review. Project Time Management Control schedule Controlling changes to the project schedule
16 Control Schedule Tools and techniques: Monitoring Performance Reviews Earned Value Controlling Resource Leveling What-if Scenarios Adjusting Leads / Lags Schedule Crashing Fast Tracking Control Schedule Primary Output: Schedule baseline (updates) Cost Management
17 Project Cost Management Estimate Costs Developing an approximation of the costs of the resources needed to complete project activities Determine Budget Aggregating the estimated costs of individual activities or work packages to establish a cost baseline Control Costs Monitoring the status of the project to update the budget and controlling changes to the cost baseline Estimate Costs Tools & Techniques Expert Judgment Analogous estimating Bottom-up estimating Parametric estimating Three point estimates (PERT) Reserve Analysis (Contingency Reserve) Output: Activity cost estimates
18 Determine Budget Aggregating the estimated costs of individual schedule activities or work packages to establish a total cost baseline for measuring project performance Output: Cost Performance Baseline Control Costs Control Cost is the process of monitoring the status of the project to update the budget and controlling changes to the cost baseline Scenario: I have a project that is 6 months long with a total budget of $50,000. After 2 months, I have spent $25,000, but I had planned to spend only $20,000. Am I in trouble or not? Control Costs Tool = Earned Value Analysis Are we on schedule? Are we within budget?
19 Earned Value Planned value (PV) = budget for the period Earned value (EV) = PV X % complete Actual cost (AC) = costs for the period Group Exercise Determine Project Budget A. Prepare the Project Budget. B. Exercise Review. Do you think we can perform Earned Value Analysis at this point? Risk M Management
20 Overview of Risk Management What is Risk Management? The process concerned with identifying, analyzing, and responding to project risk. What is Risk? Project risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on at least one project objective. Objectives can include scope, schedule, cost, and quality. -Page 275 of PMBOK 4th Edition Overview of Risk Management Objectives of Risk Management Decrease the probability and/or impact of a negative event Increase the probability and/or impact of a positive event
21 Risk Management Processes PLANNING Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses MONITORING AND CONTROLLING Monitor and Control Risks Identify Risks Risk Identification determines which risks might affect the project and documents their characteristics. It is an iterative process because new risks may become known as the project progresses. The Risk Register: List of identified risks List of potential responses Root causes of risk Updated risk categories (using Risk Breakdown Structure) Identify Risks Output:
22 Qualitative Risk Analysis Prioritizes risk based on a Risk Rating, which combines probability and impact of a risk = P X I Risk probability assessment investigates the likelihood that each specific risk will occur. Risk impact assessment investigates the potential effect on a project objective. Qualitative Risk Analysis Tools & Techniques: Risk Probability and Impact assessments Probability and Impact Matrix
23 Qualitative Risk Analysis Output: The Risk Register: Ranking and/or priority list of project risks Risks grouped by categories List of risks requiring response in the near-term Watchlists of low priority risks Plan Risk Responses Is the process of developing options, and determining actions to enhance opportunities and reduce threats to the project s objectives. It includes the identification and assignment of one or more persons (the risk response owner ) to take responsibility for each agree-to and funded risk response.
24 Plan Risk Responses Tools & Techniques: Strategies for Negative Risks or Threats: Avoid changing the project plan to eliminate the risk or to protect the project objectives (time, cost, scope, quality) from its impact Transfer shifting the negative impact of a threat, along with ownership of the response, to a third party Mitigate reduction in the probability and/or impact of an adverse risk event to an acceptable threshold Accept A strategy that is adopted because it is either not possible to eliminate that risk from a project or the cost in time or money of the response is not warranted by the importance of the risk Plan Risk Responses Tools & Techniques: Strategies for Positive Risks or Opportunities: Exploit seeks to eliminate the uncertainty associated with a particular upside risk by making the opportunity definitely happen Share allocates some or all of the ownership to a third party who is best able to capture the opportunity for the benefit of the project. Enhance modifies the size of an opportunity by increasing probability and/or positive impacts, and by identifying and maximizing key drivers of these positive-impact risks Accept Accepting an opportunity is being willing to take advantage of if it comes along, but not actively pursuing it Acceptance comes in two forms: Active Establish a contingency reserve, including amounts of time, money or resources to handle identified risks. Passive Requires no action, leaving the project team to deal with the threats or opportunities as they occur. Work around plan would then be developed
25 Matching Exercise Enhance Transfer Mitigate Share Avoid Accept Exploit. Changing the project plan to eliminate the threat. 2. Payment of a premium to the party taking on the risk. 3. Reduction in the probability and/or impact of an adverse risk to an acceptable threshold. 4. Ensure that the risk is realized. 5. Allocating ownership to a third party who is best able to capture the benefit of the project. 6. Modify the size of a risk by increasing probability and/or impacts. 7. Team has decided not to change the project plan to deal with a risk. Plan Risk Responses Output: Risk register (updates) Risk Response strategies Triggers Residual risks Secondary risks Contingency Reserves Fall back plans Risk-related contractual agreements Risk Owners RISK REGISTER Project Name: Project Manager: Risk Identification Risk Ranking Risk Response ID # Risk Description Risk Category Threat or Opportunity Objective Probability Impact Risk Score Risk Rank Strategy Type Response Description Risk Owner
26 Group Exercise Project Risk Register A. Identify the risks (threats / opportunities) associated with the project. B. Perform the Qualitative Analysis Rank the risks. Use the Probability / Impact Matrix. C. Prepare a Risk Response plan. - Identify response strategy / type
27 QQuality Management Processes include all the activities of the performing organization that determine quality policies, objectives and responsibilities so that the project will satisfy the needs for which it was undertaken. Quality is the degree to which set of inherent characteristics fulfill requirements H M Human Resource Management Includes the processes that organize, manage, and lead the project team. Project team is comprised of the people who have assigned roles and responsibilities for completing the project C M Communication Management Includes the processes required to ensure timely and appropriate generation, collection, distribution, storage, and disposition of project information.
28 PProcurement M Management Includes the processes to purchase or acquire the products, services or results needed from outside the project team to perform the work. The Project Management Profession Project Management Institute (PMI) Project Management Body of Knowledge (PMBOK) Project Management Professional (PMP) THANK YOU! Bob Hull, Caltrans, bob_hull@dot.ca.gov
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